Row over whether foreign airlines and ETS rumbles on and ICAO is incapable of producing an effective carbon scheme

The history of aviation is littered with rows between the US and Europe, long
the world’s two most important airline markets.

But the latest one has the added excitement of threatening to turn into one of
the first big carbon trade wars.

 …… talks about the ETS ….

………..

But the decision to extend it to companies outside the bloc – foreign airlines
– is the EU’s most ambitious move yet to force the rest of the world to comply with its environmental rules.

……………..

The ATA estimates the scheme would cost US airlines more than $3.1bn between
2012 and 2020, though some analysts say the costs will be lower.

At today’s relatively low carbon prices, the cost of the scheme should be small
compared with other industry charges, the Bloomberg New Energy Finance service
has calculated.

……….

The airlines’ legal challenge, still awaiting a final ruling from the European
Court of Justice, is not looking promising. Last month, an adviser to the court
cast aside most of the US airlines’ arguments, saying the EU legislation did not
infringe the sovereignty of other states and was compatible with relevant international
agreements.

Undeterred, both Republicans and Democrats in the US House of Representatives
a few weeks later approved a measure that would make it illegal for US airlines
to comply with the EU scheme.

……

This effort does raise the intriguing prospect of a US airline being unable to
fly to Europe without breaking either a US or an EU law.

This month the US joined forces with more than two dozen other countries, including
China, India, Russia and Japan, to take the fight to the International Civil Aviation Organisation (ICAO), the UN agency that sets airline standards.

In total, 26 countries told the 36-member governing council of the ICAO that
the EU measure “violates the cardinal principle of state sovereignty” and will
“curb the sustainable growth of international aviation”.

………………..

So far, despite the political pressure, Brussels is standing firm.

As the ICAO meeting ended, Connie Hedegaard, the EU climate commissioner, said:
“This decision will affect neither the EU’s commitment to working within ICAO
to agree on a global solution, nor our adopted legislation to include aviation
in the EU ETS. If the other countries want to reduce aviation emissions differently,
that is fine. Our legislation clearly says that if a country outside the EU takes
‘equivalent measures’ to reduce aviation emissions, all incoming flights from
that country can be exempted from the EU system.”

Ms Hedegaard may be waiting some time.

See full article at

http://www.ft.com/cms/s/0/09797352-0944-11e1-8e86-00144feabdc0.html#axzz1ddIQ3Rv8

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